In original terms, the May balance on goods and services was a deficit of $1,336m, a decrease of $206m on the deficit in April. Goods and services credits rose $401m (3%) and goods and services debits rose $195m (1%).

In the eleven months to May, exports of non-rural and other goods were up $15.1b (20%) and rural goods were up $1.6b (7%) on the corresponding period in 2003-04.

NOTES

REVISIONS

Revisions were made to incorporate the latest available data relating to merchandise trade and the quarterly Survey of International Trade in Services. In original terms, these revisions have increased the deficit on goods and services for the ten months to April 2005 by $229m.

FEATURE ARTICLE

A feature article providing updated information on export and import currencies will be released on the ABS web site <http://www.abs.gov.au> with the June issue of this publication.

This article will identify the major invoice currencies used for Australia's exports and imports and analyse any changes in their composition over the last five calendar years. Additionally, for the five quarters from March quarter 2004 to March quarter 2005, the article will examine currency invoices for major commodities and commodity groups, classified to the Standard International Trade Classification (SITC Rev 3).

Similar articles have appeared in the March quarter 1998, March quarter 2001 and March quarter 2003 issues of International Merchandise Trade, Australia (ABS cat. no. 5422.0). To access these articles on the web site select: Themes then Economy then International Trade then Topics of Interest.

TREND ESTIMATES

As advised in the previous issue of this publication, an estimated trend break correction of $600m has been applied in April 2005 as a result of the significant increase in the price of some non-rural export commodities. Once a minimum of three months data after the trend break are available, the size of the trend break will be measured using time series techniques and may be revised.

INQUIRIES

For further information about these and related statistics, contact the National Information and Referral Service on 1300 135 070 or Tom Jebbink on Canberra (02) 6252 5540.

ANALYSIS AND COMMENTS

BALANCE ON GOODS AND SERVICES

The trend estimate of the balance on goods and services in May 2005 was a deficit of $1,596m, a decrease of $76m on the deficit in April.

In seasonally adjusted terms, the balance on goods and services in May 2005 was a deficit of $1,556m, a marginal decrease of $2m on the deficit in April.

EXPORTS OF GOODS AND SERVICES

The trend estimate of goods and services credits rose $151m (1%) between April and May to $14,516m.

The main movement in the original series contributing to the rise in seasonally adjusted terms was wool and sheepskins, up $39m (17%), in contrast to an average April to May fall of 2% over the previous three years.

Offsetting this effect were:

other rural, up $83m (9%), compared with an average April to May rise of 16% over the previous three years

cereal grains and cereal preparations, down $52m (14%), compared with an average April to May fall of (4%) over the previous three years

meat and meat preparations, up $55m (9%), compared with an average April to May rise of (12%) over the previous three years.

Exports of goods continued

Non-rural and other goods

The trend estimate of non-rural and other goods exports rose $155m (2%) to $9,525m.

In seasonally adjusted terms, exports of non-rural and other goods rose $218m (2%) to $9,729m.

In original terms, exports of non-rural and other goods rose $512m (5%) to $9,929m.

Movements in the original series contributing to the rise in seasonally adjusted terms were:

other goods, up $258m (42%), compared with an average April to May rise of 8% over the previous three years (largely driven by increased volumes of non-monetary gold between April and May)

other non-rural, up $132m (16%), compared with an average April to May rise of 1% over the previous three years

coal, coke and briquettes, up $96m (5%), compared with an average April to May rise of 2% over the previous three years

other mineral fuels, up $43m (4%), in contrast to an average April to May fall of 1% over the previous three years.

Partly offsetting these effects were:

metals (excluding gold), down $151m (18%), in contrast to an average April to May rise of 5% over the previous three years

transport equipment, down $92m (17%), in contrast to an average April to May rise of 12% over the previous three years.

Exports of services

SERVICES CREDITS

In trend terms, services credits fell $18m (1%) to $2,936m.

Seasonally adjusted, services credits rose $17m (1%) to $2,901m.

Movements in the seasonally adjusted component contributing to the rise were:

travel services, up $12m (1%)

other services, up $11m (1%).

Partly offsetting these effects was other transportation services, down $5m (1%).

In original terms, imports of intermediate and other goods rose $114m (2%) to $6,096m.

Movements in the original series contributing to the rise in seasonally adjusted terms were:

fuels and lubricants, up $123m (9%), compared with an average April to May rise of 1% over the previous three years (while crude petroleum imports fell in both price and volume terms between April and May, there were large increases in imports of refined petroleum oils)

other goods, up $62m (16%), in contrast to an average April to May fall of 8% over the previous three years

iron and steel, up $50m (17%), compared with an average April to May rise of 9% over the previous three years

primary industrial supplies n.e.s., up $3m (3%), in contrast to an average April to May fall of 13% over the previous three years.

Partly offsetting these effects were:

processed industrial supplies n.e.s., down $134m (10%), compared with an average April to May fall of 6% over the previous three years

parts for transport equipment, down $18m (3%), in contrast to an average April to May rise of 1% over the previous three years.

Imports of services

SERVICES DEBITS

In trend terms, services debits fell $15m to $3,124m.

Seasonally adjusted, services debits fell $8m to $3,108m.

The main movement in the seasonally adjusted component contributing to this fall was freight transportation services, down $19m (3%).